An obvious point

After Obama's speech last month before Congress on health care overhaul, I asked "If it is going to be illegal for insurance companies to deny coverage to someone with a pre-existing condition, then why would anyone buy insurance before getting sick. It's like requiring State Farm to insure my home after it has already burned down".

This point is now being made by America’s Health Insurance Plans (AHIP), the main health care insurance lobbying group in Washington, based on findings in a study conducted by Price Waterhouse Coopers. I'm not sure why a study was needed to arrive at this obvious point, but this is how Real Clear Politics describes it.

Since the legislation would ban insurance companies from denying coverage on account of poor health, many people will wait to sign up until they get sick, the industry says. And that will drive up costs for everybody else.

[Update]

Krauthammer agrees: "I think the report is obvious and intuitive."